Xintian swings to loss, but new owner and AI optics demand lift outlook
First-half loss on associate collapse and write-downs Xintian expects and then reports a first-half 2026 net loss of 36.8-50.8 million yuan (final: 45.87 million), versus a profit last year. The main cause is a full bad-debt write-off on an associate that shut down, plus inventory and investment write-downs, FX losses and higher interest costs. Revenue still grew about 60% on orders.
The loss is the core fundamental fact of the period and directly weighs on the stock.
New controlling owner takes over at a 90% premium Actual controller Shi Weiping is selling 22.5% of the company to Shenzhen Yuanqi (backed by Liu Yang's Dongxin Marketing Technology) at 16.58 yuan per share, a 90% premium to the pre-halt price of 8.69 yuan. The new owner promises to buy at least 5% more within a year and push the company toward smart manufacturing.
A control change at a large premium is the biggest single price-moving event and resets who runs the company.
AI optical-module boom lifts communication-equipment shares Nvidia has shipped next-generation CPO switches and Broadcom is shipping its 51.2T switch, marking co-packaged optics entering mass production. Chinese optical-module exports jumped, and the communication-equipment sector rose 3.76% on August 4, with Xintian up 20.04% as a sector name.
Sector demand is the main external force that can lift the stock beyond its own weak earnings.
Weak cash flow and higher debt temper the recovery story The interim report shows operating cash flow of negative 50.42 million yuan, an asset-liability ratio up to 50.07%, gross margin of 20.96% and diluted loss per share of 0.24 yuan. Revenue fell to 312 million yuan, so the new owner inherits a business that is still burning cash.
It is the honest counterweight: the control-change and AI-optics hopes rest on a financially strained company.